Suez Blocking Causing Problems for Serbian Companies Too

Over 150 ships are stuck ahead of the Suez Canal due to the gigantic Ever Given boat loaded with 200,000 tons having run aground.

The route is used to deliver clothes, toys, electronics, various food items and various raw materials to Serbia. It is no wonder, then, that logistics and forwarding companies in Serbia and throughout the planet have their hands full.

Several transporters have now started redirecting their shipments around Africa, through the Cape of Good Hope, which will extend transit periods by around seven to nine days.

Finished products, building materials, tree logs and apples which even ripen in containers, are exported from Serbia through the Suez Canal. Five days of ships being prevented from passing through it will cause enormous crowding when reloading, which can cause delays of over 30 days.

Another problem concerns seasonal goods. If the delay is prolonged, bathing suits might arrive in July instead of the planned May deadline.

A new instance of the lack of containers in the market is possible as well, because empty containers sent back to China will be late as well. This chain reaction will cause transport scheduled for a later date to be late as well. Consequently, the price of transport is likely to increase, because shipping companies raise their prices when there is a lack of containers, that is, they rent containers to those who pay the most and to those who are in the biggest hurry.

Still, Serbian companies whose production depends on imported raw materials will suffer the most, because the contracted production depends on the deadlines of the delivery of raw materials, so the final products will be late as well.

Ever Given

Ever Given boat

Ever Given ship

Suez

Suez Canal

Cape of Good Hope

clothes

toys

electronics

food

raw materials

logistics companies

forwarding companies

finished products

construction materials

tree logs

apples

bathing suits

containers

lack of containers

transport price increase

price of transport